2019 (12) TMI 1687 - HC - Income Tax

Reopening of assessment u/s 147 - petitioner company is a beneficiary of entries from a transaction with two entry operators and their sister concerns - assessment reopened beyond a period of four years - HELD THAT - As pointed out that in the entire reasons recorded, there is not even a whisper regarding any failure on the part of the petitioner to disclose fully and truly all material facts and therefore, the assumption of jurisdiction by the AO u/s 147 of the Act, without there being any failure on the part of the petitioner to disclose fully and truly all material facts, is without authority of law. Having regard to the submissions advanced by the learned advocate for the petitioner, issue Notice, returnable on 20.01.2020. By way of ad-interim relief, further proceedings pursuant to the impugned notice dated 28.03.2019 issued by the respondent u/s 148 of the Act for assessment year 2012-13 are hereby stayed.

Summary

The High Court of Gujarat issued an oral order in response to a petition challenging the reopening of assessment by the Assessing Officer under section 147 of the Income Tax Act, 1961. The petitioner argued that the reasons for reopening were based on incorrect premises, as scrutiny assessment had already been done. The court issued a notice returnable on 20.01.2020 and stayed further proceedings based on the impugned notice for assessment year 2012-13.